EIB, ICO to provide £257m financing for Iberdrola’s 500MW solar project in Spain

WCN Editorial Team 17 Jul 2019 EUROPE ENERGY & UTILITIES

The European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) have agreed to provide green financing to Iberdrola for its 500MW Núñez de Balboa solar project in Extremadura, Spain.

As part of the deal, EIB will provide €145m (£131m) and ICO will provide €140m (£126.5m) for the 500MW project, which is located between the municipalities of Usagre, Hinojosa del Valle and Bienvenida in Badajoz province, on 1,000 hectares of land.

The total investment for the project is nearly €290m (£262m).

The solar project will generate enough clean electricity to be supplied to 215,000 people, more than the population of the cities of Cáceres and Badajoz, while avoiding 215,000 tonnes of CO2 emissions into the atmosphere annually.

Scheduled to be operational next year, the solar plant’s construction phase is expected to create more than 1,000 temporary jobs. The project will also include the development of the entire infrastructure needed to transmit the generated electricity to the distribution network.

EIB vice-president Emma Navarro said: “We are very happy to be supporting a project that will strengthen Spanish and European leadership in the transition towards a low-emissions economy.  Our involvement demonstrates the EIB’s strong commitment to climate action.

“The EU bank is the biggest multilateral financer of projects that contribute to climate action, supporting projects like this one that reduce contaminant emissions while generating economic growth and employment.”

Iberdrola president Ignacio Galán said: “This new agreement guarantees our investment in Núñez de Balboa, and we are continuing to work towards our target of tripling our wind and solar capacity in Spain by 2030.

“Furthermore, the financing deal signed with the EIB and ICO is in line with Iberdrola’s commitment to a sustainable energy model that enables the transition to a low-carbon economy.”

Iberdrola broke ground on the solar plant this March. The project is part of the company’s expansion of clean energy in Spain.

As part of the plan, the company aims to install up to 2GW in renewable energy by 2022 and 10GW by 2030, while creating nearly 20,000 jobs.

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Image: Emma Navarro, Ignacio Galán and ICO president José Carlos García de Quevedo at the signing event. Photo: Courtesy of Mercedes Landete/EIB.

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